Mongolia’s Mining Fiscal Regime: H1 2014

Synopsis
Timetric’s Mongolia fiscal regime report outlines governing bodies, governing laws, licenses, rights and obligations and key fiscal terms covering four commodities: coal, iron ore, copper and gold.

Summary
The mining industry is governed by the Mineral Resources Authority of Mongolia, and different departments under it. The Mineral Law and Subsoil Law are the apex laws for the country’s mining industry. The Mineral Law was enacted to promote economically viable mining and to regulate mining operations such as exploration, exploitation and other activities related to mining while the Subsoil Law is responsible for ensuring safety in the use of minerals.

Scope
The report outlines Mongolia’s governing bodies, governing laws, licenses, rights and obligations and key fiscal terms which includes, License Fee, Exploration License Fee, Mining License Fee, Royalty, Corporate Income Tax, Depreciation, Loss Carry Forward, Withholding Tax, Import Duty and Value Added Tax (VAT).

Reasons To Buy
To gain an overview of Mongolia's mining fiscal regime.

Key Highlights
‧ The Mineral Resource Authority of Mongolia (MRAM) was established in 1997 to develop and implement policies for the mineral resources sector, and create investment opportunities. The MRAM has different divisions working under it.
‧ The Geological Survey department is accountable for providing geological information required for policies and programs concerning research and development.
‧ The Coal Research Division is responsible for issuing licenses for coal exploration and mining activities. Its mission is to assist in the drafting of state policy on the development of the coal industry, and providing investors and clients with prompt and fair services.
‧ The Cadastre Division is responsible for issuing licenses for mineral exploration and mining activities.

1 Executive Summary 1
2 The Mongolian Mining Industry – Governing Bodies 6
2.1 Mineral Resource Authority of Mongolia 6
2.1.1 The Geological Survey 6
2.1.2 Coal Research Division 6
2.1.3 Cadastre Division 6
2.1.4 Mining Division 6
3 The Mongolian Mining Industry – Governing Laws 7
3.1 Minerals Law of Mongolia 7
3.1.1 Rights and obligations of the Central State Administration 7
3.2 Subsoil Law 7
3.3 General Law of Taxation 7
4 The Mongolian Mining Industry – Licenses 8
4.1 Conditions of Granting Licenses 8
4.1.1 Prospecting 8
4.1.2 Term 8
4.1.3 Exploration License 8
4.1.4 Term 8
4.1.5 Area 8
4.1.6 Mining License 8
4.1.7 Term 9
5 The Mongolian Mining Industry – Rights and Obligations 10
5.1 Rights 10
5.1.1 Rights of exploration license holders 10
5.1.2 Rights of mining license holders 10
5.2 Obligations 10
5.2.1 Obligations of prospecting license holders 10
5.2.2 Obligations of exploration license holders 10
5.2.3 Obligations of mining license holders 10
6 The Mongolian Mining Industry – Key Fiscal Terms 11
6.1 License Fee 11
6.1.1 Exploration License Fee 11
6.1.2 Mining License Fee 11
6.2 Royalty 11
6.3 Corporate Income Tax 11
6.4 Depreciation 11
6.5 Loss Carry Forward 11
6.6 Withholding Tax 11
6.7 Import Duty 12
6.8 Value Added Tax 12
7 Appendix 13
7.1 What is this Report About? 13
7.2 Methodology 13
7.3 Secondary Research 13
7.4 Primary Research 13
7.5 Contact Timetric 14
7.6 About Timetric 14
7.7 Timetric’s Services 15
7.8 Disclaimer 16